Rule 14-910. Eligible claim.
(a) The loss must be caused by the dishonest conduct of the lawyer andshall have arisen out of the course of a lawyer/client or fiduciaryrelationship between the lawyer and the claimant and by reason of thatrelationship.
(b) The claim for reimbursement shall be filed within one year afterthe date of the final order of discipline.
(b)(1) In cases of the lawyer?s death, the claim for reimbursementshall be filed within one year of the lawyer?s date of death.
(b)(2) In cases of the lawyer?s formal disability, the claim forreimbursement shall be filed within one year of the date of the order ofdisability.
(c) If the subject of the application for reimbursement from the Fundis or arises out of loss occasioned by a loan or an investment transaction witha lawyer, each loss will not be considered reimbursable from the Fund unless itarose out of and in the course of the attorney/client relationship; and but forthe fact that the dishonest lawyer enjoyed an attorney/client relationship withthe claimant, such loss could not have occurred. In considering whether thatstandard has been met the following factors will be considered:
(c)(1) the disparity in bargaining power between the lawyer and theclient in their respective educational backgrounds in business sophistication;
(c)(2) the extent to which the lawyer's status overcame the normalprudence of the claimant;
(c)(3) the extent to which the lawyer, by virtue of the attorney/clientrelationship with the claimant, became privy to information as to the client'sfinancial affairs. It is significant if the lawyer knew of the fact that theclient had available assets or was expecting to receive assets which wereultimately wrongfully converted by the lawyer;
(c)(4) whether a clear majority of the service arose out of arelationship requiring a license to practice law in Utah, as opposed to onethat did not. In making this evaluation, consideration will be given to:
(c)(4)(A) whether the transaction originated with the lawyer;
(c)(4)(B) the reputation of the lawyer as to scope and nature ofhis/her practice and/or business involvement;
(c)(4)(C) the amount of the charge made for legal services, if any,compared to that for a finder's fee, if any; and
(c)(4)(D) the number of prior transactions of either a similar ordifferent nature in which the client participated, either with the lawyerinvolved or any other lawyer, person or business organization;
(c)(5) the extent to which the lawyer failed to make full disclosure tothe client in compliance with the Utah Rules of Professional Conduct, includingdisclosure of the lawyer's financial condition and his/her intended use of thefunds.
(d) Exceptions. Except as provided by paragraph (e), the followinglosses shall not be reimbursed:
(d)(1) loss incurred by spouses, children, parents, grandparents,siblings, partners and associates of the lawyer;
(d)(2) losses covered by any bond, surety, agreement or insurancecontract to the extent covered thereby, including any loss to which any bondingagent, surety or insurer is subrogated to the extent of that subrogatedinterest;
(d)(3) losses of any financial institution which are recoverable undera "Banker's Blanket Bond" or similar commonly available insurance orsurety contract;
(d)(4) any business entity controlled by the lawyer or any person orentity described in paragraph (d)(1);
(d)(5) any governmental entity or agency;
(d)(6) any assigned claims, third party claims, claims of heirs orestates of deceased claimants;
(d)(7) any claims where claimant has failed to exhaust all otherreasonably available services or recovery methods;
(d)(8) any investment losses, as distinguished from lawyer fees, whichmight reasonably be characterized as:
(d)(8)(A) any pyramid or ponzie scheme;
(d)(8)(B) any investment in or loan to any offshore entity;
(d)(8)(C) any investment in or loan to an entity that claims that abenefit to the investor would be the evasion, avoidance, reduction or othersheltering of taxes that would be otherwise assessed on the investment; or
(d)(8)(D) any investment that promises such a high rate of return thata reasonable and prudent person would suspect that the venture is of unusuallyhigh risk.
(e) In cases of extreme hardship or special and unusual circumstances,the Committee may, in its discretion, recognize a claim which would otherwisebe excluded under these rules.